In line with a recent report published by ‘Reuters’, global G20’s watchdog, the Switzerland-based FSB [Financial Stability Board], added in its new report that regulators ought to improve their risk assessment strategies associated with the financial activity within the cryptocurrency ecosystem.
The report adds that one potential risk assessment metric regulators might look at is banks’ and another monetary entities’ degree of exposure to crypto assets. The report additionally stated that the FSB doesn’t presently believe that crypto poses “a material stability risk” to the monetary sector.
In line with the report, existing cryptocurrency regulations are somewhat weak, along with the quick rate of technological innovation might leave the area with even additional areas of questionable regulation. ‘Crypto-currencies‘ presently reportedly fall outside regulators’ jurisdiction, due partially to inconsistent standards between countries.
‘China‘, as an example, has reportedly taken a “near-total ban” approach to crypto exchanges, while Japan is making an attempt to keep up with the cryptocurrency exchanges legal with formal licensure.
As ‘reported‘ earlier, Japan is presently cracking down on cryptocurrency exchanges that don’t have sufficiently proper AML [Anti-Money Laundering] practices. Unlike China and South Korea, ICOs [Initial Coin Offerings] in Japan will be legal. Japan is also hosting the approaching G20 summit in Osaka this June, and is anticipated to guide the conversation on the global cryptocurrency regulations.